- The business community in South Africa have said figures released yesterday by the county’s statistics bureau were a further confirmation that the country was not yet out of the recession situation.
Statistics South Africa announced contraction of South Africa's Gross Domestic Product (GDP) by 3 percent for the second quarter of 2009.
According to Business Unity South Africa (BUSA), despite the slow down in the negative growth of the country, South Africa has not yet escaped recession.
"Although the rate of the negative growth in the economy has slowed, the global crisis continues to bite deep in South Africa. The South African economy is lagging behind these international developments and hence the continued recession here," said BUSA Deputy Chief Executive Officer Raymond Parsons.
He said it was essential for the country to pursue counter cyclical policies and other measures to soften the impact of the recession on growth and jobs.
"Busa hopes that the economy will bottom out by the end of 2009. The central challenge therefore remains to ensure the timely implementation of appropriate policies, including the possibility of yet another reduction in interest rates," Mr Parsons said.
Stats SA reported yesterday that the seasonally adjusted real GDP at market prices for the second quarter of 2009 decreased by an annualised rate of 3 percent compared to the first quarter's 6.4 percent.
In May, the first quarter results recorded an annualised 6.4 percent contraction, with the main contributors to the decrease in economic activity for the second quarter of 2009 said to be the manufacturing industry , the wholesale and retail trade, hotels and restaurants industry, all scoring at a minus percentage point.
Stats SA also said the finance, real estate and business services and the agriculture, forestry and fishing industries also contributed to the drop in the economy.
"Industries that contributed to positive growth included the construction industry (at 0.5 percent of a percentage point), general government services and the mining and quarrying industry (each contributing 0.3 percent of a percentage point) as well as personal services (0.1 percent of a percentage point)," Stats SA said.
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